Business Law Report: Case Studies on Consumer Law and Civil Liability

This business law report presents a legal analysis of two case studies, focusing on consumer law and civil liability. The first case examines a consumer's rights regarding a defective refrigerator under Australian Consumer Law, specifically addressing warranty issues and the obligations of suppliers. The second case delves into a negligence claim following a bicycle accident, exploring the principles of duty of care, contributory negligence, and the defenses available under the Civil Liability Act 2003. The report applies relevant legislation and case law to provide reasoned conclusions for each scenario. It covers key aspects of consumer rights, product warranties, and negligence, offering insights into legal principles and their practical application. The report concludes that the consumer is not eligible for a replacement and the driver can use defense against the legal claim. The report cites relevant legal provisions and case law to support its analysis.

Business law

Table of Contents
INTRODUCTION...........................................................................................................................3
QUESTION 1..................................................................................................................................3
Issue.............................................................................................................................................3
Rule..............................................................................................................................................3
Application..................................................................................................................................4
Conclusion...................................................................................................................................5
QUESTION 2..................................................................................................................................5
Issue.............................................................................................................................................5
Rules............................................................................................................................................5
Application..................................................................................................................................5
Conclusion...................................................................................................................................5
CONCLUSION................................................................................................................................5
REFERENCES..............................................................................................................................11

INTRODUCTION
Business law is that branch of law which assist the business organisations and people
dealing in trade and commerce in dealing with legal matters. In the present report for two
different case study legal advice is present to different persons under consumer law and civil
liability act.
QUESTION 1
Issue
James have purchased a new refrigerator for $1000 having one-year warranty over the new
product. The motor of refrigerator stopped working after one year and two months. James have
contacted the department store from which he has bought the refrigerator and asked for
replacement. The store refused to the same on the basis that product has fallen out of warranty.
Here the issue raised is that whether James can get a replacement of the refrigerator.
Rule
Australian consumer and competition Act, 2010:
Section 54:
As per this section a person when supplies goods to consumer under normal trade and
commerce there exist a guarantee that gods are of acceptable quality. This means goods are fit
for the purpose for the purpose for which they are usually supplied (Statutory Guarantees Under
the Competition and Consumer Act. 2019). This includes acceptance in from of physical
appearance and finish, free from defects, safe and durable. A reasonable consumer fully
acquainted with this state and condition of the product would regraded as acceptable.
Section 260:
This section defines the obligation to repair, replace and refund:
A supplier or manufacturer is under an obligation on condition that whether failure is a major
failure which includes:
 The goods would have been acquired by a consumer with reasonableness fully
acquainted with the nature of the failure,
 The goods do not match from the description or the same shown to consumer
 The product do not fit substantially to the purpose for which the goods of same kind are
generally supplied,

 The goods are unfit for an disclosed purpose for which supplier of the goods was made
aware where consumer have made a prior negotiation in relation to acquisition of the
goods (Wood, 2017).
 The goods do not posses the acceptable quality as they are unsafe for use.
Section 262:
This section provides the conditions when as consumer cannot reject goods:
 After end of the rejection period
 The goods have been destroyed, lost or disposed by customer,
 The goods were damaged after delivery to customer due to ay condition which is not
related to condition of goods at the time of supply,
 The goods are incorporated or attached to a real or personal property which cannot be
detached without damaging the goods.
Durability: the goods which is sold to the consumer must of durable means it most work for
the life span which is usually mentioned for such product and in case of refrigerators it is 5-10
years.
Replacement: The consumer under the Australian consumer law are given a guarantee of
replacement under the implied condition (Drew, 2018). This is applicable to the contract for
supply of goods or services to a customer.
Application
With application of the rules in the above case of James it can be stated that as per section
54 of Australian consumer law refrigerator when supplied to Jason was of acceptable quality and
the store keeper have given the guarantee that refrigerator sold o Jason was fit for all the purpose
for which it was manufactured, free from defect and was durable and come with a free repair and
replacement for a time of 12 months or one year (COMPETITION AND CONSUMER ACT 2010.
2019). Also, it can be stated when goods are sold to Jason by the department store it come with a
default condition where store was under an obligation to repair or replace the refrigerator when a
fault is detected after sales and delivery of the goods. With application of provisions of section
262 it can be stated that a warranty vested to consumer under section 260 is not exercisable after
the end of the rejection person that is warranty period. Here the warrantee given by store for free
repair and replacement was for 1 year and the motor of refrigerator broke out after 1 year and 2

months. So, the refrigerator is out of warranty for free repair, replacement vested to him under
section 260 of Australian consumer law.
Conclusion
With above application of rules to the given facts of the case of James it can be concluded
that He is not eligible to get a replacement of the fridge purchased by him. This is because the
refrigerator has fallen out of the warranty to get a free repair or replacement of the product as per
section 262.
QUESTION 2
Issue
Jason was riding a bicycle on a dark night on the out skirt roads of Brisbane. There was no
reflective material neither on the cycle nor the clothes of Jason. He collided with a car which was
driven by Sarah and she was driving with utter care and under speed limit. Jason got injured and
he brought legal action against Sarah for her being negligent. Here the issue to be answered is
what defence action can be brought by Sarah against legal action of Jason.
Rules
Civil liability act, 2003
Negligence:
As per the provision of the Civil liability act, 2003 to constitute negligent the mandatory
requisite elements are that a duty of are is owed, there is a breach of the same and it resulted in
loss or injury to the innocent party (Alexander, 2017). A person who owns a care of duty is
found to be under negligence when the duty is breached and another person suffers a loss or
damage.
Section 9: Duty of care:
Duty of care is way of expressing the neighbouring principle. This is a duty to take
reasonable care is owed by a person for another who is ought to know that a person can be
affected by his/her action in a negative manner (CIVIL LIABILITY ACT 2003, 2019). There are
certain specific relations which are recognised by the law where a pre-assumed duty of care is
owed by a person towards another. This includes, land occupant and visitors, doctor and patient,
teacher and students, road user and fellow road user, employer and employee, landlord and
tenant and others. The common law was developed in 1932, in case of Donahue v Stevenson.

Section 23: Standard care in relation to contributory negligence
This principle is applied in deciding whether a person has breached a duty of care and
also assist in easement that the person who have suffered an injury or harm has been guilty of
contributory negligence where by failing is taking precautions against the risk of that harm.
(Jackson, 2015) The person who have suffered the loss must be a reasonable person in the
position of taking a standard of care. Also, the person must know or ought reasonably have
known the risk of harm.
Section 24: Contributory negligence for defeating a claim
This section of the civil liability act provides a defence to the defendant against whom a
case of breach of duty of care is initiated. Effective application of this section results in reduction
of damages by 100% by the reason of contributory negligence on the part of plaintiff. The court
if finds that it is just and equitable for the defendant it can reduce the damage claim by 100% and
defeat the claim.
Application
With application of above rules in the facts of given case it can be stated that as a citizen
of Brisbane Sarah owed a duty of care to every person who is walking or driving on that road, so
a duty of care was owed to Jason as well. But the element of duty of care was not breached by
Sarah as while driving the car on the dark night in outskirts road of Brisbane she was driving
with car and also car was driven under speed limit by Sarah at the time when she collided with
Jason. So, as per section 9 of the Civil liability act, a duty of care of owed by Sarah to Jason but
there was no breach of the same. With application of section 3 of the act this can be clearly
seen that Jason while riding the bicycle no dark night with no highlighting element on his cycle
or his cloths which can give no idea of his presence on the road to any passers-by. This means
that Sarah was under due care but Jason was under contributory negligence as he did not take
any reasonable precaution to avoid the risk of harm for him getting collided with any other
passers by or car on the road. So as per section 24 of this act a defence can be taken by Sarah
against the claim of Jason due to his part of contributory negligence.
Conclusion
With this it can be concluded that Jason was under contributory negligence as per section
23 of the act. Due to this Sarah can take defence against Jason under section 24 of the act and
court may reduce the damage claim by 100%.

REFERENCES
Books and Journals
Wood, J. T. (2017). Consumer protection: A case of successful regulation. Regulatory Theory,
p.633.
Drew, S. (2018). Consumer law and legal costs. Precedent (Sydney, NSW) (146) p.35.
Alexander, P. (2017). Costs in Civil Liability Act matters. Precedent (Sydney, NSW). (140). p.47.
Jackson, S. (2015). Decision examines wrongdoers and liability. Proctor. 35(8). pp.40-41.
Online
Statutory Guarantees Under the Competition and Consumer Act. 2019. [Online]. Available
through :<
http://www.mondaq.com/australia/x/170794/Consumer+Law/Statutory+Guarantees+Under
+the+Competition+and+Consumer+Act+A+Can+of+Worms+Part+1>.
COMPETITION AND CONSUMER ACT 2010. 2019. [Online]. Available through :<
http://www8.austlii.edu.au/cgi-bin/viewdb/au/legis/cth/consol_act/caca2010265/>.
CIVIL LIABILITY ACT 2003. 2019. [Online]. Available through
:<http://www6.austlii.edu.au/cgi-bin/viewdoc/au/legis/qld/consol_act/cla2003161/
s13.html#obvious_risk>.